What are financial sanctions?
Financial sanctions are restrictions on the movement of capital and payments. They are usually associated with restrictions that are directed at individuals, institutions, or organisations as in the case of, for example, actions taken against the individual members of the government of a country at which an embargo is directed, or the European Union’s embargoes to combat terrorism.
Usually the assets of the person involved are frozen for the time that the financial sanctions are in force. The persons may not be provided with any more funds or other financial resources. There may be cases where exceptions are possible after previous authorisation.
Funds include financial assets and economic benefits of any kind, including, but not restricted to, cash money, cheques, monetary claims, drafts, money orders, and other instruments of payment, deposits with financial institutions or other entities.
The freezing is intended to prevent any form of movement, transfer, change to, use of, or dealing with funds.
Economic resources are financial assets of any kind, irrespective of whether they are tangible or intangible, movable or immovable, that do not constitute funds or means to acquire them.
Their freezing, which also covers any sale, hiring, or mortgaging, prevents their being used for the acquisition of funds, goods, or services.
